Wireless Technology Propels Expansion of European Residential Security Market
27 February 2007
The European residential security market is in its development stage and has high growth potential. While security remains the most important driver, technologies such as wireless have also been propelling market growth. The market's move towards IP technology and video surveillance has positively reinforced this trend.
Frost & Sullivan (http://buildingtechnologies.frost.com) estimates that the European Residential Security Market was worth EUR1.6 billion in 2005 and estimates it to reach EUR2 billion by 2012.
The market's potential has not yet been fully exploited because of issues related to the vagaries of false alarms, perceived high prices of equipment and services and the lack of awareness about security products.
"Using mature technologies such as wireless, market participants have been able to successfully reduce the number of false alarms and also provide equipment and services at competitive prices," notes Frost & Sullivan Research Analyst Shailaja Pradhan. "The availability of technologies such as IP offers immense possibilities to security companies as well as end users. These factors, together with heightened awareness about residential security and increasing confidence in security products are supporting market expansion."
Wireless technology has become an integral part of everyday life. This mature technology has found wide applications in voice and messaging (including cell phones and pagers), hand held and Internet-enabled devices (Internet-enabled cell phones and PDAs among others) and data networking (WLAN, broadband wireless and others). End users prefer this technology since it enables quick, trouble-free and convenient installation, is reliable and eventually reduces total set-up costs.
Manufacturing and security services companies have seized this opportunity to drive wireless technology further. Currently, nearly half of the new installations are based on wireless technology, and this figure will rise in the next few years.
At present, the most critical market restraint is the lack of end-user education. End users do not perceive the need for a security system in their premises. Security companies are trying to change this end-user mindset and have found it extremely challenging.
This situation has led to other challenges such as increased competition - with the market growing sluggishly, companies are competing to maintain or increase their market share. The result has been downward pricing pressure and narrowing profit margins.
"In the residential sector, security remains a 'grudge purchase' and therefore a speciality product," explains Ms. Pradhan. "A security product is usually purchased by the owner of valuable property, or due to perceived increase in crime or sometimes on the recommendation of an insurance company."
This attitude is proven by the fact that only 5.5 per cent of homes in Europe have an intrusion alarm system. Unless end users are educated about the benefits of security systems and encouraged to willingly invest in them, security is likely to remain a speciality product.
"Security companies should invest in end-user education to overcome these challenges," advises Ms. Pradhan. "This could be achieved in partnership with security associations and local authorities by promoting the use of security as a necessary part of everyday life and not as a low- priority adjunct."
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the European Residential Security Market, send an e-mail to Chiara Carella - Corporate Communications at chiara.carella@frost.com with your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information through email upon receipt of the above information.
European Residential Security Market is part of the Electronics and Security Subscription, which also includes research in the following markets: Strategic Analysis of the European Industrial and Commercial Security Markets, Opportunities and Strategies in the I&C Security Market by Vertical End User Sector, European Industrial and Commercial Security Products and Systems Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com
Contact:
Chiara Carella
Corporate Communications - Europe
P: +44-(0)-20-7343-8314
F: +44-(0)-20-7730-3343
E: chiara.carella@frost.com
Johanna Haynes
Corporate Communications - North America
P: +1-210-247-3870
F: +1-210-348-1003
E: johanna.haynes@frost.com
Patrick Cairns
Corporate Communications Executive - Africa
P: +27-21-680-3274
F: +27-21-680-3296
E: patrick.cairns@frost.com
Donna Jeremiah
Corporate Communications - Asia Pacific
P: +603-6304-5832
F: +603-6201-7402
E: djeremiah@frost.com
Ravinder Kaur
Corporate Communications - India
P: +91-44-42044515
F: +91-44-24314264
mailto:ravinder.kaur@frost.com
Sharmin Jassal
Corporate Communications - Australia
P: +61-2-8247-8900
E: sjassal@frost.com
http://www.frost.com
List of keywords in this press release: European residential security market, residential security, Europe, market, security, wireless technology, IP technology, video surveillance, false alarms, security products, security companies, voice and messaging, cell phones, pagers, hand held devices, Internet-enabled devices, Internet-enabled cell phones, PDAs, data networking, WLAN, broadband wireless, crime, insurance company, intrusion alarm system
Source: prnewswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Articles
|
